Govt cash utilization rate slowed to 42.2% end-Jan

THE cash utilization rate of government agencies slowed to 42.2 percent as of the end of January, despite the higher cash releases by the Department of Budget and Management (DBM).

- Reine Juvierre S. Alberto

Data from the DBM showed that notices of cash allocation (NCAs) released to state agencies rose by 7.31 percent to P322.672 billion as ofend-January 2026 from P300.669 billion in the same period last year.

Of the amount of NCAs released to government agencies, these state units had spent P136.294 billion, resulting in a 42.2-percent NCA utilization rate. The rate is much slower than the 78 percent recorded in the same period a year ago. The remaining unused NCAs amounted to P186.377 billion.

“Initial monitoring suggests that a significant portion of the slower utilization may be attributed to reduced disbursement levels in certain large infrastructure-implementing agencies, particularly those affected by ongoing reviews and recalibrations in flood control and other major public works programs,” read the DBM’s response to a query from the BusinessMirror.

Given the size of their allocations, the DBM said even temporary changes can significantly affect the overall utilization rate.

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